Post on 22-Jul-2015
Uncovering the Bangor Region’s Competitive Economic Sectors
Bangor Region Development Alliance In cooperation with
Action Committee of 50 and
Eastern Maine Development Corp.
February 5, 2015
But Exports Come in Two Flavors
Exports: Sales that bring $$
into the Region
Goods & services sold
outside of Region
Non-residents spending $$ in
the Region
$ $
Also a Service Component of Economy
Service: Sales that re-
circulate or keep $$ in the Region
These businesses prevent $$ from leaking
out of Region
Major Finding #1: Bangor’s Greatest Strengths
EXPORT BUSINESSES
Bring New $$ into the Region
Producing for Sale or Use OUTSIDE of
Region
Selling to Non-Residents
WITHIN the Region
SERVICE BUSINESSES
Re-circulate $$ within the Region
Selling to Non-Residents
WITHIN the Region
SERVICE BUSINESSES
Re-circulate $$ within the Region
How do we know? Specialization Ratios
A Specialization Ratio well >1 implies
• competitive advantage and
• significant net exporting (or little leakage)
Calculated for ~500 business sectors. A bit like an X-Ray of the Economy.
Our Broad Export Sectors with High SRs and Growing Are All in 2nd Category:
• Higher Education
• Health Services
• Comparison Goods Retail Stores
For Example:
SR v Maine/US Growing?
4-Yr Colleges & Universities 3.0/3.2
General & Surgical Hospitals 1.2/1.6
Psychiatric & Subst. Abuse Hospitals 5.0/7.1
Medical & Diagnostic Labs 2.9/3.2
General Merchandise Stores 1.4/1.3
“Other” Motor Vehicle Stores 1.3/2.6
And Moving Up Fast
• Some Arts, Entertainment Sectors
• Travel Accommodations and Food Service
For Example:
Spec Ratio ME/US Growing?
Gambling Industries 4.7/3.5
Promoters – Perf. Arts and Sports 1.1/1.7
Hotels 0.9/1.2
Full Service Restaurants 1.0/1.0
Limited Service Restaurants 1.2/1.0
What About Exports Out of Region?
EXPORT BUSINESSES
Bring New $$ into the Region
Producing for
Sale or Use
OUTSIDE of
Region
Selling to Non-Residents
WITHIN the Region
SERVICE BUSINESSES
Re-circulate $$ within the Region
Producing for Sale OUTSIDE
of Region
Major Finding #2
The Bangor Metro Area does not specialize in broad industrial sectors that produce goods and services for sale out of the region.
E.g, not a Manufacturing Center or a
Professional & Technical Services Center
Specialization & Growth Rates (at the Broadest Level of Industries)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
-40% -20% 0% 20% 40% 60% 80% 100%
Spe
cial
izat
ion
Rat
io
Growth Rate 2005-2013
Health Care & Social Assistance
Retail Trade
Utilities
Accommodation & Food
Ag, Forest, Fish & Hunting
Information
Other Services
Real Estate Construction
Public Administration
Manufacturing
Management of Companies
Arts, Entertainment, & Recreation
Educational Services
Admin Support & Waste Management
Transportation & Warehousing
Wholesale Trade
Professional & Technical Services
Finance & Insurance
3 Broad Categories that Include Exporters of Goods and Services
But Dig Deeper into Sub-Sectors
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
-150.0% -100.0% -50.0% 0.0% 50.0% 100.0% 150.0%
Growth Rate, 2005-13
Spe
cial
izat
ion
Rat
io
A number of these are significant exporters
Major Finding #3 Region hosts a number of sub-sectors with high SRs that produce goods and services for export:
• Several manufacturing sub-sectors • Forestry support activities • Specialty construction trades • Long-distance freight trucking • Elec power generation – esp. renewables • Contract telemarketing & admin. services Some sub-sectors in structural decline, but many are growing
Manufacturing
Spec Ratio ME/US Growing?
Food-related Products
• Frozen Pastries 7.8/48.3
• Frozen Specialty Foods 1.9/9.2
Forest & Wood-related Products
• Pulp Mills 3.7/79.8
• Specialty Wood Products 1.8/16.1
• Wood Cabinet & Countertops 2.1/1.0
Boat Building 1.3/11.4
Turbine Unit Manufacturing 9.4/34.0
Manufacturing, cont’d.
Spec Ratio ME/US Growing?
Plate Work & Fab. Structural Metals 2.2/2.1
• Note related truck body manufacturing
Cement, Concrete, Asphalt Products
• Asphalt Paving Mix & Blocks 5.0/30.1
• Other Concrete Products 2.7/2.8
Motor Vehicle Parts 7.4/0.5
Emerging Manufacturing?
Forest-related Bioproducts (fuel, chemicals)
Sensor Technology Products
Composites-related Products (marine, defense, bridges, boats, etc.)
Water Filtration Technologies
Microbreweries
Forestry, Surveying & Mapping
Spec Ratio ME/US Growing?
Forestry Support Activities 4.2/12.3
Logging 0.9/9.5
Timber Tract Operations 2.8/6.9
Surveying & Mapping Services 3.4/6.7
Construction and Energy Spec Ratio ME/US Growing?
Construction • Structure & Exterior Bldg Contractors 1.2/0.9
• HVAC Contractors 1.1/1.2
• Other Bldg. Equipment Contractors 2.7/3.6
Energy • Biomass Electric Power Generation 4.0/118.7
• Hydropower Generation 1.2/2.4
• Fossil Fuel Elec. Power Generation 1.6/0.4
?
?
Admin. & Support Services
Spec Ratio ME/US Growing?
Telemarketing & Contact Centers 1.1/3.1
Contract Office Admin. Services 2.3/2.8
Key Questions: Can We Trace These Export Sectors Back to Regional Competitive Advantages?
And can we build on these advantages to fill in supply chains, enhance clusters?
In cooperation with EMDC, Action Committee of 50 and others
Competitive Advantages Suggested by These Sectors
Proximity to Northern Forest*
Proximity to Gulf of Maine* Transportation Infrastructure Outdoor Recreational Brand*
Higher Ed Center/Flagship University* Center for Comprehensive Health Care* Heritage of Skilled Artisan Workforce
* High level of confidence
Spec. & grew 2005-13
Spec. but did not grow 2005-13
Not spec. but growing
Not spec., not growing
Emerging?
Forest
Conserv Areas 6
Wood Prod Mfg 3
Elec Power Gen 4
Out-door
Rec. 6
Forestry3
Pulp & Paper Mfg 4
Boat Bldg 6
Truck Transp
3
Amuse- ment & Rec Ind 3
Advanced structures
Scien-tific R&D
Serv. 4
Ware- hous.
3
Misc Wood Prod
Mfg 6
Hydro-power
6
Bio-mass 6
Log-ging 4
Forestry Support
4
Timber Tract Ops 4
Wood Chem Mfg 6
Higher Ed
Center
Prof, Sci & Tech Serv 3
Survey & Map-ping 6
Forest Bio-products Transp
Hub
Composites
Recreat. Resource
How dense the network? How many connections to dark blue? How many connections to broad sectors (#3 or #4?) How many connections to other competitive advantages?
Higher Ed
Center
Spec. & grew 2005-13
Spec. but did not grow 2005-13
Not spec. but growing
Not spec., not growing
Emerging?
Coll & Univ 4
Jr & Tech
Colleges 4
Tech & Trade
Schools4
Skilled Special Trades
Prof, SciTech Services
2
Forestry Support
4
Forestry 3
Scien- tific R&D
Serv. 4 Start-ups
Ag Support
4
Soft ware
Publish4
Infor-mation
3
Pulp & Paper Mfg 4
Forest
Anim Prod &
Aquacul 3
Cattle Farming
4
Aqua- Culture
4 Gulf of
Me Emerg sectors
Gen Med &
Surg Hosp 4
Health Care
Center
Engin- eering
6
Skilled Artisans
Spec. & grew 2005-13
Spec. but did not grow 2005-13
Not spec. but growing
Not spec., not growing
Emerging?
Arch & Struct Metals
4
Boat Bldg 6
Fndtn &Struct Contr. 4
Bldg Equip
Contr 4
Turbine Mfg. 4
Fab Struct Metals
6
Plate Work 6
Prefab Metal
Bldgs 6
Motor Vehicle Body Mfg 4
Higher Ed
Center
Transp Hub
HVAC Contr 6
Other Bldg
Equip 6
Sheet metal
? Misc. Wood Prod Mfg 6
Industry Roundtables
• BRDA and EMDC will organize roundtables over next 6 months
• And target our recruitment and marketing of the region around the supply chain and cluster analyses that come out of them.
STAY TUNED!